But Scottish Football Association chief executive Gordon Smith confirmed on Wednesday morning that whoever succeeds George Burley as manager would be free to select the 27-year-old.
Speaking before Smith's announcement, McGregor told Rangers News: "I feel good right now and I don't think I've missed a day's training since pre-season so, touch wood, that will continue.
"In the past few months, I have been working really hard and trying to keep my head down and it has paid off.
"Hopefully, I am now getting back to my best and it's always nice when people say you are playing well.
"But I know I need to keep going and not let my standards slip. That is always the challenge when you are at a club like Rangers, not just for me but for every player."
Gers boss Walter Smith believes McGregor's ban for flicking V-signs at photographers during Scotland's World Cup qualifier with Iceland in April actually did the player some good.
He said: "Allan is back to where he was in my first season here, playing exceptionally well.
"Since his mistake with Scotland, he has been superb in his approach to training and games."
Smith added: "He now has a proper focus on what's important to him in life. If anything, what happened with the national team has forced him into that situation.
"The incident made him realise that football is what he has to concentrate on.
"From Rangers' point of view, he's back to his best."